Converting Paper Bonds to Electronic Surety Bonds (ESBs)

Surety companies and surety bond producers can convert paper-issued bonds into Electronic Surety Bonds (ESBs) in NMLS so that existing obligations appear in the regulator’s electronic bond inventory.

About this task

Converting a paper bond allows surety companies and bond producers to electronically reissue an existing paper bond so that it can be tracked, maintained, and reported through NMLS. The conversion creates an electronic version of the bond that includes the original bond number, amount, and effective date, linking it to the licensee’s record within NMLS for regulator visibility.

NMLS supports the conversion process by providing information from participating states in the Rendered State Bond Forms library on the Electronic Surety Bonds page of the NMLS Resource Center and, and agencies place a license item informing licensees of their need to convert their bond using the electronic method. Also, the state regulators participating in the ESB functionality may be sending communication to their licensees impacted to alert them to the expectations regarding deadlines and requirements.

Note: Both the surety company and the surety bond producer must have an active association in NMLS before converting any existing bond. The conversion process cannot be completed if the association has not been established and accepted by both entities.

Procedure

Sign in to NMLS using an account with Manage Bonds or Manage and Sign Bonds permissions.
From the Tasks tab, select Electronic Surety Bonds, then choose Convert Paper Bond.
Search for and select the licensee that the original paper bond covers.

Note: Only licensees authorized in states that have adopted ESB functionality appear in search results.
Enter the details from the paper bond, including bond number, amount, effective date, and any applicable underwriting company information.

Note: These details must exactly match the data provided on the original paper bond to ensure successful linkage in NMLS.
Review and confirm the bond information displayed on the confirmation page.
Submit the bond for execution.

Note: Once submitted, the bond’s status changes to Pending Execution until the authorized representative electronically signs it. The execution step is completed by the surety company before the bond is delivered to the regulator.
After execution, verify that the bond appears under the Managed Bonds list with a status of Active.

Note: Converted bonds display both the original paper bond number and the new NMLS electronic bond reference number for traceability.

What to do next

Tips for successful conversions

Confirm that all bond data matches the original paper bond exactly, including licensee name, bond number, and effective date.
Ensure the association between the surety company and surety bond producer is active and current before conversion.
Review the Rendered State Bond Forms library on the NMLS Resource Center to verify that the state participates in ESB conversions.
Monitor state regulator communications for updates on conversion deadlines and requirements.

Note: Converted bonds follow the same lifecycle as newly created ESBs and can later be amended, renewed, or canceled within NMLS as required by state regulation.